Morning Gold & Silver Market Report – 3/30/2011

BERNANKE SPEAKS, PRECIOUS METALS PRICES RISE

Federal Reserve Chairman Ben Bernanke does have history on his side when he says that increasing prices for food and fuel won’t “break” the cost of living for most Americans.  When the Fed looks at inflation they look at two measures, one of which does not consider food and energy prices, because it provides a better picture of long-term trends.  Marketwatch’s Rex Nutting points out that while consumers are biased (and only thinking of the 25% of expenses that are increasing, while ignoring the 75% of “sticky” expenses), the Fed has a credibility problem.  This is simply because, frankly, no one believes them when they say that inflation is not a problem at the moment.  Of course, monetary issues are hardly confined to the U.S.  Portugal needs a bailout more than ever, as borrowing rates hit new euro-era highs.

Fighting in Libya continues as the rebels have been pushed back by Muammar Gaddafi’s forces.  The rebels seem to need Western air strikes to stand up to government forces, whether it be to advance or even hold position.  Many are also concerned about lack of food and medicines being delivered to the insurgents.  China believes that Western action is making things worse, saying that “Dialogue and other peaceful means are the ultimate solution to the problems.”

At 8:06 AM (CT) the APMEX precious metals spot prices were:

• Gold - $1,428.50 (up $11.30 on the day)
• Silver - $37.72 (up $0.67)
• Platinum - $1,762.50 (up $19.90)
• Palladium - $758.00 (up $4.10)